Homeowners with Citigroup or any homeowner pursuing a federal home modification will obviously have the ultimate goal of getting a permanent modification on their home loan when this could potentially help them avoid foreclosure, and it was recently reported by the Treasury Department that Citigroup was one of the servicers that did see an increase in the number of active permanent modifications they have made as of August 2011. This increase may point to continued positive signs that homeowners are getting the assistance they need, but homeowners are still facing an uphill battle in some instances when it comes to finding foreclosure prevention for their specific financial needs.
Yet, Citigroup did see an increase from 47,048 permanent home loan modifications in July to 47,832 permanent modifications in August, which is beneficial in that homeowners are still seeing offers for these permanent modification plans went a lower mortgage payment is required before a homeowner can continue making their payments. Obviously, numerous factors in the financial lives of homeowners have led to their inability to pay their mortgage and over the past months, specifically as high levels of unemployment have remained in place, there are still homeowners who are new to the modification process and unsure of what rate of success they may see if they pursue this particular type of aid.
While homeowners are not guaranteed a modification, and in some cases modifications are simply not enough to help the homeowner avoid the loss of their home, Citigroup and other major financial institutions have continued to see increases in these active modifications that are permanent, but homeowners do still have problems when it comes to making payments. However, Citigroup is one of the mortgage servicers who did see an improvement in terms of the conversion rate for homeowners who are attempting to move from a trial modification plan into a permanent modification agreement.
The Treasury Department reports that Citigroup homeowners seeking a trial modification are still in a position where these offers are being made, but the conversion rate on trial modifications started after June 1, 2010 for Citigroup is currently at 77%, in terms of the number of homeowners who are seeing a transition from a trial to permanent modification. However, homeowners who are in a position where they are having financial troubles may need to go further than simply applying for a modification, as some homeowners have other areas of debt in their life which may have dragged them down and made meeting a home loan modification payment more difficult.
Yet, it’s hoped that the servicers will continue to see improvements in areas of not only offerings from modifications to homeowners but seeing these trials converted to permanent modifications as the issues that homeowners still face may be more thoroughly addressed and servicers who may be lacking will find solutions to any problems that they may be able to solve in the hopes of offering a maximum number of assistance programs to homeowners in need.